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Addressing an event here, he said in the last two years or so the banks had been in the news for the wrong reasons.
"Banks have lost a lot of money. When I say banks have lost the money that means the nation has lost a lot of money and public in turn has lost a lot of money. Banks have been in a bad light," Chowdary said.
He said while some large frauds are very well-planned ones, the small ones were not that well-planned.
"Some say automation is the best way to prevent a fraud. I think automation is the solution provided it is automated in the right sense. So bring a preventive mechanism. You need to be a thief. You need to know where the system can be manipulated," Chowdary said, inaugurating a conference on financial frauds organised by Anti-Corruption Academy, a private organisation.
The need for preventive vigilance or what we call standard operating procedures is very important, he said, referring to frauds in banks.
Chowdary said there was a need to skill accountants and other people associated with the banking sector to help them check frauds.